EG Industries Bhd has signed a third letter of intent (LOI) with China’s Cambridge Industries Group (CIG), a Shanghai-based specialist in optical and broadband technologies, to further scale up manufacturing operations in Batu Kawan, Penang. The initiative marks a significant step in the continued collaboration between the two companies and complements EG Industries’ existing facility in Sungai Petani, Kedah.
In a corporate statement, EG Industries outlined plans to significantly enhance production capabilities at the Batu Kawan facility. The expansion will include the installation of new high-speed surface mount technology (SMT) lines, the upgrade of cleanroom environments from 1K to 10K standards specifically for optical modules, and a wider deployment of automation across testing and packaging processes.
These enhancements align with CIG’s broader innovation roadmap and are designed to strengthen its strategic partnership with EG Industries, ensuring greater responsiveness to global customer demands.
The latest LOI follows two earlier agreements. In April 2024, EG Industries secured a second LOI to manufacture 1.6-terabit optical signal transmitters and receivers for next-generation 5G wireless networks. This built on the groundwork laid in 2022 under the first LOI, which covered the production of 100G, 200G, and 400G optical components.
Chief Executive Officer Datuk Alex Kang said the expanded Batu Kawan facility would serve as a cornerstone in the development of advanced connectivity solutions, including the roll-out of 5G and 5G Advanced (Release 18) technologies for global deployment.
“This expanded collaboration also reinforces regional supply chain resilience and enhances delivery efficiency across CIG’s global customer base,” he added.
Shares in EG Industries closed one sen higher at RM1.20 on Friday, representing a 0.84% gain and valuing the company at RM1.12 billion. Despite this uptick, the stock has declined 4% year-to-date.
-The Edge
